KUALA LUMPUR (Mar 20): Poh Huat Resources Holdings Bhd climbed as much as nine sen or 4%  after the company posted stronger financial results and declared a dividend.

Furniture manufacturer Poh Huat (fundamental: 2.1; valuation: 2.4) climbed to its intraday high at RM2.39 before paring gains.

At 10.22am, the stock was traded at RM2.33 with 169,600 shares changing hands

Yesterday, Poh Huat said net profit for the first quarter ended Jan 31, 2015 (1QFY15) expanded to RM8.18 million from RM6.31 million a year earlier. Revenue increased to RM105.09 in 1QFY15 million from RM95.51.

The group declared a three sen final single-tier dividend for FY14.The ex-date for the dividend was fixed for May 6, 2015.

In a note today, TA Securities Holdings Bhd said it expected Poh Huat to ship more furniture to its main market in North America on the back of a positive outlook for the US economy.

TA said export-based Poh Huat, which derived US dollar-denominated income, was also expected to benefit from the weaker ringgit against the strengthening US dollar.

"This (higher shipment) should translate into better bottom line for the group in financial year 2015 (FY15).

"Besides, having majority of the sales denominated in foreign currencies, mainly US dollar, we expect further strengthening of the US dollar against the Malaysia ringgit to be a boost to the group's bottom line," TA said.
 
TA maintained its "buy" call for Poh Huat shares with an unchanged target price of RM2.62.

(Notes: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)